Stocks gave up an early gain and ended lower on Wall Street after the Federal Reserve indicated it could start reducing its bond holdings.

Banks led the declines Wednesday. JPMorgan Chase lost 1.3 percent.

The market had been broadly higher most of the day but started to turn lower after minutes released from the Fed’s last policy meeting indicated the central bank might start trimming its balance sheet later in the year.

The Fed bought large amounts of bonds during the financial crisis to stimulate the economy.

The Standard & Poor’s 500 index lost 7 points, or 0.3 percent, to 2,352. It was up 18 points earlier.

The Dow Jones industrial average lost 41 points, or 0.2 percent, to 20,648. The Nasdaq fell 34 points, or 0.6 percent, to 5,864.

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3:45 p.m.

An early rally is evaporating as U.S. stocks surrender their gains while banks plunge along with bond yields and interest rates.

The sell-off began late Wednesday after the Federal Reserve suggested it might start trimming its balance sheet later in the year.

The yield on the 10-year Treasury note fell to 2.33 percent, down from 2.38 percent shortly before the minutes were released.

That helped send banks lower. JPMorgan Chase lost 1 percent.

The Standard & Poor’s 500 index fell 4 points, or 0.2 percent, to 2,356. It was up 18 points earlier.

The Dow Jones industrial average lost 29 points, or 0.1 percent, to 20,661. The Nasdaq composite fell 30 points, or 0.5 percent, to 5,868.

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Stocks are solidly higher in midday trading, led by gains in industrial companies and retailers.

Investors were encouraged Wednesday by a survey of private businesses showed that hiring was very strong last month.

Panera Bread soared 13.8 percent after the sandwich and soup chain agreed to be bought by European conglomerate JAB for more than $7 billion.